Binary Bet (UP)
How does it work?
- Win a multiple of your stake if the asset price is above the strike price at the time the bet expires.
- If the asset price is below the strike price when the bet expires, you win nothing but only lose the stake.
How to bet
- Set a strike price.
- Set how much you want to win and the expiry time of the bet.
- Then place your bet.
Example
The Wall Street Index is currently trading at 10,500. A trader bets that it will be above 10,900 in 3 market days and wants to win $1,000 if this occurs. He pays a stake of $100.After 3 days the Wall Street Index is trading above 10,900, so the trader wins $1,000.
If the Index had not been above the strike price at the time of expiry the trader would win nothing, but would only lose the $100 stake.--
Note that a 3 day bet expires in 3 market days at the same time as it was placed. A 3 hour bet expires in 3 market hours, even if this means rolling over to the next day. The same applies for bets denominated in minutes.
Binary Bet (DOWN)
How does it work?
- Win a multiple of your stake if the asset price is below the strike price at the time the bet expires
- If the asset price is above the strike price when the bet expires, you win nothing but only lose the stake.
How to bet
- Set a strike price.
- Set how much you want to win and the expiry time of the bet.
- Then place your bet.
Example
The Wall Street Index is currently trading at 10,500. A trader bets that it will be below 10,100 in 3 days and wants to win $1,000 if this occurs. He pays a stake of $100.After 3 market days the Wall Street Index is trading below 10,100, so the trader wins $1,000.
If the Index had not been below the strike price at the time of expiry the trader would win nothing, but would only lose the $100 stake.--
Note that a 3 day bet expires in 3 market days at the same time as it was placed. A 3 hour bet expires in 3 market hours, even if this means rolling over to the next day. The same applies for bets denominated in minutes.
